Guide for Nagercoil Commercial Real Estate Investment

Nagercoil is a major commercial city within the Kanyakumari district and the 12^th biggest city in Tamil Nadu. The city has a large literate population, with an average literacy rate of 94.99%, which can provide a huge skilled human resource for new business investors. 

Nagercoil is a prominent commercial centre in Tamil Nadu. Apart from agriculture and fisheries, there are several major industries in the city, which include tourism, Information and Technology (IT), wind energy, rubber products, motor repairing and agro-based industries.

Due to the commercial importance of the city, it is one of the best locations in India to invest in commercial real estate profitably. Continue reading for further details.

Top Reasons to Invest in Nagercoil Real Estate

Here are some of the significant factors which make Nagercoil a profitable investment destination in commercial real estate:

• Transport and Communication

The Nagercoil roadways are well-connected to the National highways, State highways and District roads. The roads connect the city to other major cities like Madras, Thiruvananthapuram, Manakudi, Kurumbanai and Colachel.

The Nagercoil railway junction further connects the city to Chennai, Mangalore, Chettikulam and Karaikudi.

• Industries and Commerce

Nagercoil is a prominent industrial city in Tamil Nadu famous for its plantation industry. Apart from these, there are several major industries which include coir-making, rubber products manufacturing, food-processing, handloom-weaving, cement manufacturing, textile manufacturing, etc. 

Due to the presence of these industries, there is increasing demand for commercial properties in Nagercoil.

Commercial Real Estate Investment Opportunities in Nagercoil

Here are some of the major commercial locations in Nagercoil that you can invest in profitably:

• Kottar

Kottar is a major commercial locality in Nagercoil. It has excellent transportation facilities which connect it with the other areas of the as well as the neighbouring cities. This locality has the necessary infrastructure like banks and hospitals nearby.

Furthermore, Kottar has a lot of commercial establishments like hotels and malls. There is a shopping mall, 31 shopping plazas, 10 supermarkets, and 29 restaurants and food joints in this location.

• Vadasery

Investing in commercial real estate in Vadasery can bring you high returns. It is well-connected to the rest of the city. There are 34 bus stops near this location. This place also has excellent infrastructure and amenities nearby.

This location is the commercial hub of the city. There is a shopping mall, 23 shopping plazas, 6 supermarket stores and 20 restaurants and food joints in this location. The commercial vibrance of this area makes it an ideal place for commercial real estate investments.

Things to Consider Before Investing in a Commercial Property in Nagercoil

Keep these factors in mind to choose the best property for commercial real estate investment:

• Location and Connectivity

The location of a commercial property plays a crucial role in discerning the value of the property and its rental prospects. It is always wise to look for commercial properties in locations which have good infrastructure and amenities. 

Furthermore, look for properties in areas which have excellent transportation connectivity to the rest of the city as well as other cities nearby.

• RERA Authentication

Under the Real Estate Regulatory Authority Act, 2016, every state has a statutory body for the regulation of the real estate market. The main aim of the real estate regulatory authority is to maintain transparency and accountability in the state’s real estate business.

Before buying a commercial property in Nagercoil, make sure to visit the Tamil Nadu RERA website to check the authenticity of the property and its builder.

Stamp Duty in Nagercoil, Tamil Nadu

Given in the table below are the stamp duty rates for commercial property in Nagercoil:

Registration Charges in Nagercoil, Tamil Nadu

Apart from the stamp duty, you also have to pay the registration charges to transfer the property in your name. Given here in the table below are the registration charges for commercial property in Nagercoil:

Nagercoil Real Estate Sector: What’s the Forecast?

As Nagercoil moves towards becoming the pre-eminent commercial destination, the demand for commercial properties is estimated to go up in leaps and bounds.

The state and central government are paying increasing attention to the development of the infrastructure and amenities in Nagercoil and Kanyakumari. The Kanyakumari railway station is scheduled to be redeveloped at an estimated cost of ₹49.36 crores.

Furthermore, there are increased efforts to develop the road infrastructure of Nagercoil and Kanyakumari. The NH 66 is aimed at improving the connectivity of Nagercoil and Kanyakumari within the state.

Thus, it is quite evident that Nagercoil is on its way to becoming a model commercial centre in southern India.

Commercial Real Estate vs Other Asset Classes

Investing in commercial property comes with its pros and cons. Here is a comparison of the advantages and disadvantages of investing in commercial property vs other asset classes:

• Commercial Real Estate vs Residential Real Estate

Commercial real estate can fetch you higher profits when compared to residential real estate because the tenants are usually businesses and companies. Furthermore, commercial real estate has higher rent generation potential than residential real estate.

• Commercial Real Estate vs Gold

Commercial real estate can get you higher returns than gold. However, gold has higher liquidity. It is wise to invest in commercial property if you are having a mid to long-term investment plan.

• Commercial Real Estate vs Stocks and Mutual Funds

Stocks can get you higher profits than commercial real estate. However, commercial properties are a safer form of investment than stocks. It is because stocks are highly volatile and the returns can fluctuate according to market conditions.

• Commercial Real Estate vs Bonds

Both these asset classes can get you stable profits. However, bonds have lower credit risk than commercial real estate. Furthermore, commercial real estate has lower liquidity than bonds.

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Given below is a table which compares the different asset classes based on returns, liquidity, risk, volatility, and ticket size:

Steps to Invest in Commercial Real Estate in Nagercoil

Here are some of the steps that you can follow to invest in commercial property in Nagercoil:

Step 1: Finalise your investment budget.

Step 2: Conduct research to find the potential localities which are showing high rates of development and have high rental prospects.

Step 3: Visit the shortlisted sites and look at the infrastructure and amenities available nearby.

Step 4: After finalising a suitable property that you want to invest in, prepare the documents of ownership like the sale deed, foundation certificate and property assessment extract.

Step 5: Complete the financial transactions. Make sure to pay the required stamp duty and registration charges to transfer the ownership of the property in your name.

Final Word

Nagercoil is a major commercial hub in Tamil Nadu which is undergoing rapid infrastructural development. As a result, business investors are flocking to this city and establishing their businesses in the city. As the prices go up in the future, you will get high returns from your investments. Such investments also have high rental prospects.

Frequently Asked Questions